The role of information in a two-traders market

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)

Abstract

In a very simple stock market, made by only two initially equivalent traders, we discuss how the information can affect the performance of the traders. More in detail, we first consider how the portfolios of the traders evolve in time when the market is closed. After that, we discuss two models in which an interaction with the outer world is allowed. We show that, in this case, the two traders behave differently, depending on (i) the amount of information which they receive from outside; and (ii) the quality of this information.
Original languageEnglish
Pages (from-to)224-233
Number of pages10
JournalPHYSICA. A
Volume404
Publication statusPublished - 2014

All Science Journal Classification (ASJC) codes

  • Statistics and Probability
  • Condensed Matter Physics

Fingerprint Dive into the research topics of 'The role of information in a two-traders market'. Together they form a unique fingerprint.

Cite this